Telesat Faces Revenue Decline, Reports $447 Million Q4 Loss

Telesat Corporation reported a challenging fourth quarter for 2024, highlighting a significant 19% drop in annual revenue to $571 million and a net loss of $302 million, largely due to foreign exchange impacts and reduced demand from North American customers. The company faced a GAAP loss per share of C$8.97 and a 22.9% year-over-year revenue decline in Q4, which also contributed to a 40% drop in adjusted EBITDA. Despite these financial setbacks, Telesat achieved notable progress on its Telesat Lightspeed project, securing $2.54 billion in loan financing from the Canadian and Quebec governments to enhance its Low Earth Orbit satellite capabilities. Looking ahead, Telesat anticipates continued revenue challenges in 2025 with projected revenues between C$405 million and C$425 million and operating expenditures significantly increasing for the Lightspeed initiative. Executives emphasized the need for strategic execution to mitigate declines in traditional revenue streams while focusing on developing innovative satellite solutions for future demands. The overall sentiment reflects concerns over the company’s ability to balance substantial investments with pressing financial challenges.